Plexus Corp 8-K, filed Apr 21, 2021

Plexus Corp (PLXS)

8-K 2021-04-21 For: 2021-04-21

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Added on April 12, 2026

About this 8-K

Plexus Corp filed this 8-K on April 21, 2021.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.01 par value	PLXS	The Nasdaq Global Select Market


Exhibit Number						Description
99.1						Press release issued by Plexus Corp., dated April 21 , 2021
104						Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document)


Date: April 21, 2021						PLEXUS CORP.
						(Registrant)
						By: /s/ Patrick J. Jermain
						Patrick J. Jermain
						Executive Vice President and Chief Financial Officer


Quarterly Comparison	Three Months Ended
(in thousands, except EPS)	Apr 3, 2021			Jan 2, 2021			Apr 4, 2020
Revenue	$	880,885		$	830,355		$	767,364
Gross profit	91,002			79,277			61,445
Operating income	50,687			46,866			17,209
Net income	41,763			36,199			12,926
Diluted EPS	1.42			1.23			0.43

Gross margin	10.3		%	9.5		%	8.0		%
Operating margin	5.8		%	5.6		%	2.2		%

ROIC (1)	17.3		%	16.3		%	11.4		%
Economic return (1)	9.2		%	8.2		%	2.6		%

(1) Refer to Non-GAAP Supplemental Information in Tables 1 and 2 for non-GAAP financial measures discussed and/or disclosed in this release, such as adjusted operating income, adjusted net income, adjusted diluted EPS, ROIC and economic return, and a reconciliation of these measures to GAAP.


Business Segments ($ in millions)	Three Months Ended
	Apr 3, 2021		Jan 2, 2021		Apr 4, 2020
Americas	$	365	$	327	$	334
Asia-Pacific	459		451		388
Europe, Middle East, and Africa	83		79		74
Elimination of inter-segment sales	(26)		(27)		(29)
Total Revenue	$	881	$	830	$	767


Market Sectors ($ in millions)	Three Months Ended
	Apr 3, 2021				Jan 2, 2021				Apr 4, 2020
Industrial (1)	$	407	46	%	$	378	46	%	$	339	44	%
Healthcare/Life Sciences	350		40	%	319		38	%	271		35	%
Aerospace/Defense	124		14	%	133		16	%	157		21	%
Total Revenue	$	881			$	830			$	767

(1) At the beginning of fiscal 2021, Plexus consolidated the previously reported Industrial/Commercial and Communications market sectors to form the Industrial market sector. Prior period amounts have been reclassified to conform to the current period presentation.


Cash Cycle Days	Three Months Ended
	Apr 3, 2021	Jan 2, 2021	Apr 4, 2020
Days in Accounts Receivable	52	53	55
Days in Contract Assets	12	12	13
Days in Inventory	89	93	99
Days in Accounts Payable	(61)	(59)	(62)
Days in Cash Deposits	(20)	(19)	(18)
Annualized Cash Cycle *	72	80	87
* We calculate cash cycle as the sum of days in accounts receivable, days in contract assets and days in inventory, less days in accounts payable and days in cash deposits.


What:			Plexus Fiscal 2021 Q2 Earnings Conference Call and Webcast
When:			Thursday, April 22, 2021 at 8:30 a.m. Eastern Time
Where:			Participants are encouraged to join the live webcast at the investor relations section of the Plexus website, https://plexus.gcs-web.com/events-and-presentations/upcoming-events, where a slide presentation reviewing fiscal second quarter 2021 results will also be made available ahead of the conference call. Conference Call: +1.866.922.5180 with passcode: 3860807
Replay:			The webcast will be archived on the Plexus website and available via telephone replay at +1.855.859.2056 or +1.404.537.3406 with passcode: 3860807


PLEXUS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended				Six Months Ended
	Apr 3,		Apr 4,		Apr 3,		Apr 4,
	2021		2020		2021		2020
Net sales	$	880,885	$	767,364	$	1,711,240	$	1,619,773
Cost of sales	789,883		705,919		1,540,961		1,479,138
Gross profit	91,002		61,445		170,279		140,635
Operating expenses
Selling and administrative expenses	38,286		38,233		70,697		77,489
Restructuring and impairment charges	2,029		6,003		2,029		6,003
Operating income	50,687		17,209		97,553		57,143
Other income (expense):
Interest expense	(3,818)		(3,814)		(7,904)		(7,946)
Interest income	390		533		764		1,178
Miscellaneous, net	(825)		154		(2,343)		(2,019)
Income before income taxes	46,434		14,082		88,070		48,356
Income tax expense	4,671		1,156		10,108		4,424
Net income	$	41,763	$	12,926	$	77,962	$	43,932
Earnings per share:
Basic	$	1.45	$	0.44	$	2.71	$	1.50
Diluted	$	1.42	$	0.43	$	2.65	$	1.46
Weighted average shares outstanding:
Basic	28,736		29,291		28,799		29,216
Diluted	29,310		29,925		29,409		29,999


PLEXUS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)

	Apr 3,		Oct 3,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	294,370	$	385,807
Restricted cash	142		2,087
Accounts receivable	508,576		482,086
Contract assets	116,440		113,946
Inventories	771,605		763,461
Prepaid expenses and other	37,787		31,772
Total current assets	1,728,920		1,779,159
Property, plant and equipment, net	379,014		383,661
Operating lease right-of-use assets	68,877		69,879
Deferred income taxes	22,351		21,422
Other	39,226		35,727
Total non-current assets	509,468		510,689
Total assets	$	2,238,388	$	2,289,848

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and finance lease obligations	$	50,229	$	146,829
Accounts payable	529,948		516,297
Customer deposits	175,099		159,972
Accrued salaries and wages	64,860		76,927
Other accrued liabilities	100,722		103,492
Total current liabilities	920,858		1,003,517
Long-term debt and finance lease obligations, net of current portion	188,730		187,975
Accrued income taxes payable	47,974		53,899
Long-term operating lease liabilities	34,751		36,779
Deferred income taxes	7,042		6,433
Other liabilities	25,081		23,765
Total non-current liabilities	303,578		308,851
Total liabilities	1,224,436		1,312,368
Shareholders’ equity:
Common stock, $.01 par value, 200,000 shares authorized,
53,838 and 53,525 shares issued, respectively,
and 28,659 and 29,002 shares outstanding, respectively	538		535
Additional paid-in-capital	627,176		621,564
Common stock held in treasury, at cost, 25,179 and 24,523, respectively	(986,539)		(934,639)
Retained earnings	1,373,041		1,295,079
Accumulated other comprehensive loss	(264)		(5,059)
Total shareholders’ equity	1,013,952		977,480
Total liabilities and shareholders’ equity	$	2,238,388	$	2,289,848


PLEXUS CORP. AND SUBSIDIARIES
NON-GAAP SUPPLEMENTAL INFORMATION Table 1
(in thousands, except per share data)
(unaudited)

		Three Months Ended									Six Months Ended
		Apr 3,			Jan 2,			Apr 4,			Apr 3,			Apr 4,
		2021			2021			2020			2021			2020
Operating income, as reported		$	50,687		$	46,866		$	17,209		$	97,553		$	57,143
Operating margin, as reported		5.8		%	5.6		%	2.2		%	5.7		%	3.5		%

Non-GAAP adjustments:
Restructuring and impairment charges (1)		$	2,029		$	—		$	6,003		$	2,029		$	6,003
Adjusted operating income		$	52,716		$	46,866		$	23,212		$	99,582		$	63,146
Adjusted operating margin		6.0		%	5.6		%	3.0		%	5.8		%	3.9		%

Net income, as reported		$	41,763		$	36,199		$	12,926		$	77,962		$	43,932

Non-GAAP adjustments:
Special tax impacts (2)		—			—			—			—			(814)
Restructuring and impairment charges, net of tax (1)		1,816			—			5,373			1,816			5,373
Adjusted net income		$	43,579		$	36,199		$	18,299		$	79,778		$	48,491

Diluted earnings per share, as reported		$	1.42		$	1.23		$	0.43		$	2.65		$	1.46

Non-GAAP per share adjustments:
Special tax impacts (2)		—			—			—			—			(0.02)
Restructuring and impairment charges, net of tax (1)		0.07						0.18			0.06			0.18
Adjusted diluted earnings per share		$	1.49		$	1.23		$	0.61		$	2.71		$	1.62

(1)	During the three months ended April 3, 2021, restructuring charges of $2.0 million, or $1.8 million net of taxes, were incurred. During the three months ended April 4, 2020, restructuring and impairment charges of $6.0 million, or $5.4 million net of taxes, were incurred due to the previously announced closure of our Boulder Design Center.
(2)	During the three months ended January 4, 2020, there were $1.9M in tax benefits related to US foreign tax credit regulations issued during the quarter, partially offset by $1.1M of tax expense as a result of special tax items.


PLEXUS CORP. AND SUBSIDIARIES
NON-GAAP SUPPLEMENTAL INFORMATION Table 2
(in thousands)
(unaudited)

ROIC and Economic Return Calculations	Six Months Ended				Three Months Ended				Six Months Ended
	Apr 3,				Jan 2,				Apr 4,
	2021				2021				2020
Operating income, as reported		$	97,553			$	46,866			$	57,143
Restructuring and impairment charges	+	2,029			+	—			+	6,003
Adjusted operating income		$	99,582			$	46,866			$	63,146
	x	2			x	4			x	2

Adjusted annualized operating income		$	199,164			$	187,464			$	126,292
Adjusted effective tax rate	x	13		%	x	13		%	x	13		%
Tax impact		25,891				24,370				16,418
Adjusted operating income (tax effected)		$	173,273			$	163,094			$	109,874

Average invested capital	÷	$	1,002,260		÷	$	1,002,087		÷	$	966,630

ROIC		17.3		%		16.3		%		11.4		%
Weighted average cost of capital	-	8.1		%	-	8.1		%	-	8.8		%
Economic return		9.2		%		8.2		%		2.6		%


(1)			Included in Other accrued liabilities on the Condensed Consolidated Balance Sheets.
(2)			In the fiscal first quarter of 2020, Plexus adopted and applied Topic 842 to all leases using the modified retrospective method of adoption. The prior year comparative information has not been restated and continues to be reported under the accounting standards in effect for fiscal 2019.